The purpose of the conditions section of an insurance policy is to

A) cover unique insurable exposures of the insured.

B) list the obligations of the insured and the insurance company.

C) alter the general provisions of the insuring agreement.

D) eliminate uninsurable perils.

Answer: B

Property

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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